GR Infra Projects Limited IPO Details

GR Infra IPO: Key Details

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Company Information

GR Infra Projects Limited, incorporated in 1995, is an integrated road engineering, procurement and construction (“EPC”) company with experience in design and construction of various road/highway projects across 15 States in India and has recently diversified into projects in the railway sector.

Their principal business operations are broadly divided into three categories:

• Civil construction activities, under which they provide EPC services;
• Development of roads, highways on a Build Operate Transfer (“BOT”) basis, including under annuity and Hybrid Annuity Model (“HAM”); and
• Manufacturing activities, under which they process bitumen, manufacture thermoplastic road-marking paint, electric poles and road signage and fabricate and galvanize metal crash barriers.

As of the date of RHP, they have one operational road project on a BOT (annuity) basis and 14 road projects awarded under the HAM. They also have experience in constructing state and national highways, bridges, culverts, flyovers, airport runways, tunnels and rail over-bridges.

Competitive Strengths

• Focused EPC player with road projects focus
• Established track record of timely execution
• In-house integrated model
• Strong financial performance and credit rating
• Experienced Promoters with strong management team

Company Strategy

• Continued focus on road EPC business
• Pursue other segments within the EPC space
• Leverage core competencies with enhanced in-house integration
• Strengthen internal systems and continue to focus on technology and operational efficiency
• Financial discipline coupled with strategy to monetise assets

Proceeds from GR Infra IPO will be used to:

• The Company will not receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer.

GR Infra IPO: Financials

Comparison with listed industry peers

GR Infra IPO: Risks

• Inability to meet obligations, conditions and restrictions imposed by the financing agreements could adversely affect ability to conduct business and operations
• Company is required to take prior consent of its lenders under some of its financing agreements for undertaking certain actions, including the Offer.
• Comapny derives majority of its revenue from civil construction and the financial condition would be materially and adversely affected if it fails to obtain new contracts
• Primarily dependent on road projects in India undertaken or awarded by the GoI or state governments, they derive majority of revenues from contracts with a limited number of government entities.
• If any Build-Operate-Transfer (“BOT”) project is terminated prematurely, they may not receive payments due, which may result in a material adverse effect on the financial condition.

For complete internal and external risk factors, you can refer to the RHP of the company.

GR Infra IPO: Registrar and Lead Managers